BACHELOR OF BUSINESS (HONS)

SEPTEMBER 2023 SEMESTER

FINAL ASSIGNMENT

COURSE CODE : ECO101

COURSE NAME : PRINCIPLES OF MICROECONOMICS

This final assignment carries 60% of the total assessment for this subject.

EXAMINER(S): STUDENT NAME & HELP ID

MR K CHANDRA SAKARAN A/L K KANAN

Date (Released): 6 JANUARY 2024 Submission: 27 JANUARY 2024

TIME ALLOWED : 21 DAYS

INSTRUCTION(S):

1. This final assignment consists of TWO (2) sections. Answer ALL questions.
2. Students are required to submit their answers via Turnitin in HELP LMS.
3. Students must submit their answer script in PDF format to the agreed platform. The similarity index
be less than 15%. Late submission will NOT be accepted.
4. The format of the submitted answer script should be as below:
Font: Times New Roman
Font Size: 12
Spacing: 1.5
Margin: Normal
5. Students must write their name and student ID in each of their answer script.
6. Students MUST pass this final assignment in order to pass this subject.

(This final assignment consists in 14 printed pages, including cover page))

[UFM] ECO101 ( September 2023 Semester, Final Assignment) Page 2

INSTRUCTIONS:

1 Your assignment should be typed using font size 12, Times New Roman, and 1.5
spacing.
2 Write a report of 2000 words in length. This excludes quotes and references. You are
discouraged from going beyond this limit.
3 It should contain complete references by using the APA referencing method for all
citations made in the paper (including in-text citations). An essay without citations
would be considered plagiarism and would be awarded a failed grade.
4 You have to Turnitin and submit your final assignment answer in the Final
Assignment Turnitin and Submission Point in the HLMS by the due date. The
similarity index must be less than 15%. Late submission is not accepted. Use for
HELP email for all academic purposes.
5 The assignment should be paginated.
6 The arrangement of your assignment materials must be in the following order.
 On the first page of the assignment, you have to write your FULL NAME,
HELP Student ID, Subject Code, and Subject Name.
 Final assignment answer
 Reference list
Use your FULL NAME for your assignment filename. Submit your assignment in
PDF format.
7 Prohibited website sources
 Economicshelp.com
 Investopedia
 Wikipedia
 Ukessays.com
 Tutor2u.net
 Dineshbakshi.com/a-level economics
 Boundless. economics
[UFM] ECO101 ( September 2023 Semester, Final Assignment) Page 3

SECTION A: APPLICATION QUESTION (20%)

Answer ALL questions.
QUESTION
Assume only labor and capital inputs are required to produce good X. The inputs and
production of a small firm in a perfectly competitive market are given in Table 1.

Table 1: Inputs and production of a perfectly competitive firm

Labor input Capital input Total Production
0 20 0
20 20 10
40 20 25
60 20 45
80 20 70
100 20 90
120 20 105
140 20 115
160 20 120

The perfectly competitive market demand and supply are given as follows.
Q = 80 – P ( Market demand)
Q = 3P (Market supply)
a) Determine the equilibrium market price for good X.
(2 marks)

b) Suppose the price of labor is $10 per unit and the price of capital is $20 per unit. Compute
the cost of labor and the cost of capital for each level of production. Provide your answer
in Table 2. Describe the difference between labor inputs, capital inputs, cost of labor, and
the cost of capital.
( 10 marks)
 [UFM] ECO101 ( September 2023 Semester, Final Assignment) Page 4

Table 2: Inputs, production, and costs

Labor Capital Total Cost of Cost of
input input Production labor capital
0 20 0
20 20 10
40 20 25
60 20 45
80 20 70
100 20 90
120 20 105
140 20 115
160 20 120

c) Use your results in part (b) to compute the total costs(TC), Average Fixed Cost(AFC),
Average Variable Cost(AVC), Average Total Cost(ATC), and Marginal Cost(MC).
Provide your answers in Table 3.
(10 marks)

Table 3: The Total Cost, Average Fixed Cost, Average Variable Cost, Average Total
Cost, and Marginal Cost

Average Average Average

Total Cost of Cost of Total Fixed Variable Total Marginal
production(Q) labor capital Cost(TC) Cost(AFC) Cost(AVC) Cost(ATC) Cost(MC)
0
10
25
45
70
90
105
115
120

d) Compute the firm’s total revenue and marginal revenue. Provide your answer
in Table 4. Can this firm set the price of the good? Why?
(8 marks)
[UFM] ECO101 ( September 2023 Semester, Final Assignment) Page 5

Table 4 :
Total Price Total Marginal
production(Q) per unit Revenue(TR) Revenue(MR)
0
10
25
45
70
90
105
115
120

e) Suppose the firm’s objective is to maximize profit. Use the Total revenue- Total cost
approach and the marginal approach to determine the profit-maximizing output and the
value of maximum profits. Complete Table 5. Can this firm sustain the profit in the long
run? Explain.
(20 marks)

Table 5: The Firm’s Revenue, Costs, and Profits

Total Total Marginal Total Marginal Profit/Loss

production(Q) Revenue(TR) Revenue(MR) Cost(TC) Cost(MC
0
10
25
45
70
90
105
115
120
[UFM] ECO101 ( September 2023 Semester, Final Assignment) Page 6

SECTION B: ESSAY QUESTION (80%)

QUESTION

When firms can set their price, then there are a variety of strategies that each firm may
follow. Naturally, if a firm is profit maximizing, then the strategy chosen will be that which
brings in the most (economic) profit.

Referring to the above statement analyze the outcomes of the two types of pricing strategies a
monopoly firm can use that are taught in this course. How firms can sustain profit in the long
run. Discuss the justification for the implementation of public policy towards monopoly.

Final assignment structure Maximum words limit

Introduction 200
Compare and contrast between a single price and price 600
discrimination outcomes. Be sure to provide suitable
diagrams.
Discuss how firms can sustain profit in the long run. Provide 600
suitable examples.
Discuss the justification for the implementation of public 600
policy towards monopoly. Provide specific examples of
policies.
Total 2,000
Note: The maximum word limits for each part of the question are only a guideline.
 [UFM] ECO101 ( September 2023 Semester, Final Assignment) Page 7

Assessment Excellent Good Fair Poor Very Poor Score Weight Marks
Criteria (5) (4) (3) (2) (1)
Introduction of a A very clear A clear A brief
An adequate A vague 5
monopoly introduction introduction description
introduction introductio
market. to the to the introduction
to the n to the
monopoly monopoly to the
monopoly monopoly
market. market. monopoly
market. market.
market.
Compare and A very clear A clear An adequate A brief A vague 5
contrast between comparison comparison comparison comparison comparison
a single price between the between the between the between the between the
and perfect price single price single price single price single price single price
discrimination monopoly monopoly monopoly monopoly monopoly
outcomes. Be and perfect and perfect and perfect and perfect and perfect
sure to provide price price price price price
suitable discriminatio discriminatio discriminatio discriminatio discriminati
diagrams. n outcomes n outcomes n outcomes n outcomes. on
using using using Did not use outcomes.
suitable suitable suitable any Did not use
models/diagr models/diagr models/diagr models/diagr any
ams. ams. ams. ams. models/dia
grams.
Discuss how A very clear A clear An adequate A brief A vague 10
firms can sustain discussion of discussion of discussion of discussion of discussion
profit in the long the methods the methods the methods the methods of the
run. Provide firms creates firms creates firms creates firms creates methods
suitable entry barriers entry barriers entry barriers entry barriers firms
examples. to sustain the to sustain the to sustain the to sustain the creates
profit, in the profit, in the profit, in the profit, in the entry
long run, long run, long run, long run. Did barriers to
using using using not provide sustain the
relevant relevant relevant relevant profit, in
examples. examples. examples. examples. the long
run. Did
not provide
relevant
examples.
Discuss the A very clear A clear An adequate A brief A vague 30
justification for discussion of discussion of discussion of discussion of discussion
the the the the the of the
implementation justification justification justification justification justification
of public policy for the for the for the for the for the
towards implementati implementati implementati implementati implementa
monopoly. on of public on of public on of public on of public tion of
Provide specific policy policy policy policy public
examples of towards towards towards towards policy
policies. monopoly. monopoly. monopoly. monopoly. towards
Supportive Supportive Supportive Did not monopoly.
 [UFM] ECO101 ( September 2023 Semester, Final Assignment) Page 8

with specific with specific with specific support with Did not
examples of examples of examples of specific support
policies. policies. policies. examples of with
policies. specific
examples
of policies.
Referencing and All the Most of the A reasonable Some of the Very few 10
in-text citation references references amount of references references
are credible are credible references is are credible are credible
and reliable. and reliable. credible and and reliable. and
Perfect in- Highly reliable. Inaccurate reliable.
text citation accurate in- Fairly in-text Highly
based on the text citation accurate in- citation inaccurate
APA format. based on the text citation based on the in-text
APA format. based on the APA format. citation
APA format. based on
the APA
format.
Overall Very well Well Fairly well Poorly Very 10
presentation presented. presented. presented. presented. poorly
Strictly Adhering to Adhering to Adhering to presented.
adhering to most of the some of the very few of Not
the instructions instructions the adhering to
instruction given in the given in the instructions the
given in the guidelines. guidelines. given in the instruction
guidelines. guidelines. given in the
guidelines.
Total

Section A 20
Section B 80
Overall mark 100
 [UFM] ECO101 ( September 2023 Semester, Final Assignment) Page 9

GRADING SCHEME
Mark Range GRADE GRADE DEGREE
POINT CLASSIFICATION
 Comprehensive and excellent grasp of
85 - 100 HD 1 4.00 key concepts
 Excellent use of analytical means and
logical arguments
 Excellent synthesis of arguments and
FIRST-CLASS excellent use of relevant examples
 Balanced discussions and an excellent
80 – 84 HD 2 3.75 flow of ideas
 Excellent command of the language with
no errors
 Excellent and consistent referencing
 Comprehensive and excellent grasp of
75 - 79 DI 1 3.50 key concepts
 Excellent use of analytical means and
logical arguments
 A good synthesis of arguments and
SECOND UPPER excellent use of relevant examples
CLASS  Balanced discussions and a good flow of
70 – 74 DI 2 3.25 ideas
 Excellent command of the language with
no errors
 Excellent and consistent referencing
 Competent grasp of key concepts
65 – 69 CR 1 3.00  Competent use of analytical means and
logical arguments, albeit with some
errors
SECOND LOWER  Fair synthesis of arguments and moderate
CLASS use of relevant examples
60 – 64 CR 2 2.75  Fairly balanced discussions and a fairly
clear flow of ideas
 Competent command of language and a
limited amount of errors
 Satisfactorily is referencing
 A basic grasp of key concepts
55 - 59 PS 1 2.50  Less than the satisfactory use of
analytical means and logical
arguments
 Little synthesis of arguments and hardly
any relevant examples
THIRD CLASS  Some evidence of balanced discussions
50 - 54 PS 2 2.00 PASS and poor organization
 Satisfactorily command of language and
a considerable amount of errors
 Relatively flawed referencing
 [UFM] ECO101 ( September 2023 Semester, Final Assignment) Page 10

 Shows ignorance of key concepts

0 - 49 FL 0.00  Less than the satisfactory use of
analytical means and logical
arguments
 Little synthesis of arguments no relevant
examples
 Little or no balanced discussions and
poor organization
 Relatively poor command of language
and unable to express ideas clearly
 No referencing or poor referencing

*** END OF FINAL ASSIGNMENT ***

[UFM] ECO101 ( September 2023 Semester, Final Assignment) Page 11

ACADEMIC INTEGRITY

Honesty and Responsibility

Academic integrity is an important tenet for HELP University (the “University”). In pursuit
of the highest standards of academic integrity, the University holds its students to the highest
ethical standards defined by the Rules and Regulations section of the Academic Handbook.
All students studying a HELP University programme are subjected to and are bound by the
Student Academic Misconduct Rule to assure academic honesty. Students are required to sign
a pledge on the assignment cover sheet before submitting their assignments.

What is Plagiarism?
Plagiarism is academic dishonesty or academic theft, and it is a serious academic offence.
Plagiarism includes, but is not limited to, the followings:
1. quote, paraphrase, or summarise someone else’s ideas, theories, or data, in whole or in
part, without appropriate acknowledgement;
2. borrow ideas, opinions, or words, in whole or in part, from other sources without
properly crediting the author(s);
3. use any facts, statistics, diagrams, or graphs, in whole or in part, without
acknowledging the source clearly;
4. claim or imply original authorship of someone else’s ideas, theories, or data, in whole
or in part, as your own;
5. employ or allow someone to help to revise, amend or write your work and pass it off
as your original work;
6. collaborate with or allow other students to copy your work; and
7. draw on sources more than what you have acknowledged by citations.

While a student is not discouraged to discuss an assignment with his/her friends or

classmates, the work he/she submits must be done by the student alone. If a student shares
his/her assignment with other students and they plagiarise it, the student is as guilty as those
students who plagiarised his/her assignment. All parties to plagiarism are considered equally
guilty. Under no circumstances should a student be involved in collusion with other students
unless he/she is permitted to work on an assignment jointly with the lecturer/tutor. If a
student is
[UFM] ECO101 ( September 2023 Semester, Final Assignment) Page 12

unsure what constitutes plagiarism, he/she is obliged to consult the lecturer/tutor on the
matter before submission of his/her assignment.

When and How to Reference?

Knowing when and how to cite is a student’s responsibility. If he/she is in doubt or needs
more help on this matter, the student may consult the lecturer/tutor. The following list
comprises some of the sources a student will need to reference. The list is by no means
exhaustive but simply consists of the most common sources used by students to complete
their work.

1. Books
2. Chapters in books
3. Journal articles
4. Conference papers
5. Newspaper articles
6. Magazines
7. Websites
8. Study guide

Students are advised to cite in the following cases [1]:

1. When he/she quotes two or more words verbatim, or even one word if it is used in a
way that is unique to the source;
2. When he/she introduces facts that he/she has found in a source;
3. When he/she paraphrases or summarises ideas, interpretations, or conclusions that
he/she finds in a source;
4. When he/she introduces information that is not common knowledge or that may be
considered common knowledge in your field, but the reader may not know it;
5. When he/she borrows the plan or structure of a larger section of a source’s argument
(for example, using a theory from a source and analyzing the same three case studies
that the source uses);
6. When he/she builds on another’s method found either in a source or from
collaborative work in a lab;
7. When he/she builds on another’s program in writing computer code or on a not-
commonly-known algorithm; and/or
8. When he/she collaborates with others in producing knowledge.

1
http://www.yale.edu/bass/writing/sources/plagiarism/warning.html, accessed May 18, 2008.
[UFM] ECO101 ( September 2023 Semester, Final Assignment) Page 13

In general, a referencing system requires two parts:

1. In-text citations
This is information about a source within the text of an assignment.
2. List of references
This is a list of all sources a student has used to research his/her assignment. It is
alphabetically arranged by author's surname and appears immediately after the last
page of an assignment.

Different faculties or departments may have different requirements on how referencing for an
assignment should be done. The various formats used for in-text citations and list of
references are available on the following websites:
1. HarvardSystem
(http://www3.imperial.ac.uk/library/subjectsandsupport/referencemanagement/harvard))
2. Chicago Style (http://www.chicagomanualofstyle.org/index.html)
3. American Psychological Association or APA Style (http://www.apastyle.org)
4. Modern Language Association of America or MLA Style (http://www.mla.org/style)

Once a student has selected a referencing style for his/her assignment, he/she must follow the
same style consistently throughout the assignment. We strongly suggest that the student
consults the lecturer/tutor about which method to use before submission of his/her
assignment. Penalties for Plagiarism

The Turnitin Similarity Index for all programmes offered must be less than 15%.

Penalties for plagiarism range from mark reduction for the assignment to expulsion from the
University. If plagiarism has been found to have occurred, the action(s) taken will be
determined by the forms of plagiarism implicated:

1. Complete plagiarism
Verbatim copying another person’s work without acknowledgment
- To be referred to a panel2 for further investigation. If the student is found to be
guilty, a grade “FL” is to be awarded for the subject.

2. Substantial plagiarism (Turnitin Similarity Index ≥ 30%)

2
The panel consists of the HoD as the Chair and 2 to 3 senior academic staff.
[UFM] ECO101 ( September 2023 Semester, Final Assignment) Page 14

Near-verbatim copying another person’s work by simply altering the order of the
sentences or the format of the presentation or by changing a few words or phrases
without acknowledgment.
- Based on a report submitted by the lecturer in charge of the subject, a Zero
mark will be awarded for the said assessment.

3. Minimal plagiarism (Turnitin Similarity Index ≥ 15%)

Paraphrasing by changing and/or eliminating some words without proper
acknowledgment.
- Based on a report submitted by the lecturer in charge, a deduction of up to
50% of the marks the student is entitled to receive for the said assessment.

Pleading ignorance or unintentional plagiarism does not constitute valid reasons for
plagiarism and will not avoid the penalties from being imposed. Excuses for acts of
plagiarism such as the following, but not limited to, will not be entertained:
1. I don’t have time to do the assignment
2. I have too many assignments due on the same day
3. I don’t know, I didn’t do it
4. I am not aware
5. I don’t understand what plagiarism means
6. I have no intention to plagiarize
7. I forgot to cite the reference
8. I forgot to include the bibliography
9. My English is not good
10. My lecturer/tutor did not explain to me
11. In my country, it is alright to copy someone else’s work
12. My friend copied my assignment when I let him/her look at my assignment
13. My friend copied my assignment when I allow him/her to use my laptop
14. I did my assignment in the computer lab, someone must have copied my work
15. I asked my friend to submit my assignment and he/she copied my work
16. I discussed my assignment with my friends, so our answers are the same/similar
17. Even though I do not have in-text citations but I have a bibliography/reference list
Students should be reminded that it is their responsibility to take due care throughout their
written work to effectively reference or cite when they use others’ ideas from any source.